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Should I get a home loan, or take out a mortgage to have rehabbing work done?

By Terry Savage on February 15, 2021 | Housing / Real Estate

Hi Terry,

I own a 1908 2-flat that I inherited from my parents years ago. They finished paying it off in 1979, so nothing is owed on it. I’m going to need extensive electrical work in the basement done. I’m thinking that since the work will be extensive, maybe I should have the whole basement gutted and have the front half turned back into a rental apartment. It has not been rentable for many years. I believe that the floor tiles are probably made of asbestos and many of them are cracked and missing portions. Would I be better off getting a home loan or should I take out a mortgage? I have no idea even where to start.

Thanks for your time.

Terry Says

Thats a tough call, because this is not a residence; it is a rental property and you need to consider different accounting possibilities. I know one person who has all the answers — Leslie Struthers at Guaranteed Rate! Email her: Leslie@rate.com. Use my name in the subject line so she will take a quick look! (I get nothing out of this recommendation!)

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